Saab: Victor Muller is Hopeful of Quick Solution, but Reorganization is also on the table

For the second time in two years, Saab is perilously close to the edge of the cliff. But it may be rescued, once again, at the 11th hour: according to a company source close to negotiations with Chinese investors, Saab Automotive executives are “very optimistic” about raising funds this week.

Now haven’t we’ve heard that before? Only this time, Saab Chairman Victor Muller told Automotive News that he is seriously considering reorganizing the company to protect it from its creditors. And this comes just three days after Saab’s head of technical development, Mats Fagerhag, denied the Swedish public radio’s report that the carmaker is seeking court protection.

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Saab Denies Reports that it is Seeking Court Protection - For Now

As the days go by without a viable solution to Saab's worsening financial problems, the closer the company gets to its breaking point.

Today, Sweden's public radio (Sveriges Radio) ran a report citing unnamed sources that said Saab's parent company Dutch group Swedish Automobile NV (SWAN) was preparing to apply for court protection from its creditors. If that were to happen, Saab would be placed in a process of corporate restructuring similar to the one it entered in 2009 while GM was in control.

Later in the day, Mats Fägerhag, head of technical development at Swedish Automobile NV told the radio station, "We have not taken any decision to apply for reorganization".

Swedish Automobile NV issued a rather vague statement saying the company is looking to secure funds and is evaluating "all available options" to "secure the continuity of Saab".

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Saab Worker's Unions May Force Company into Bankruptcy State

Apparently, it’s not just suppliers who are demanding to either be paid by cash-strapped Saab or seize its assets. IF Metall and Unionen, the two biggest worker unions of Saab Automobile, have stated they will most likely request a court order to put the company into bankruptcy, unless their wages are paid within the next two weeks.

Saab is scheduled to pay its workers on Friday, August 26, however the company announced on Tuesday that payments may be delayed since the funds that it had supposedly secured are not yet available.

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Saab Says there's a New Risk of Delayed Payments to Workers

More bad news for cash-strapped Saab. After Sweden's regulators started the collection process against Saab Automobile for failing to meet a deadline last week to pay two suppliers, the automaker's parent company Swedish Automobile N.V. (Swan) announced today that the payment of August wages to employees could be delayed because some of the funds that were committed by investors may not be paid in time. Read more »

Swedish Regulator Prepares to Seize Saab Assets as the Automaker Hires Endeavor to Secure New Funding

Saab just can't seem to get a break. When you think that it's on the right path to solve its problems, suddenly new issues arise. This time it’s Sweden’s Debt Enforcement Agency, which, according to Detnews, has started collection proceedings after the company failed to meet last Tuesday’s deadline to pay two suppliers.

Saab’s debt to Kongsberg Automotive AB, a Norwegian manufacturer of car seat parts, and Infotiv AN, a Swedish consulting firm, amount to $633,000, with the majority belonging to Kongsberg according to the Agency’s chief, Hans Ryberg.

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Saab Ditches Frankfurt Motor Show as Debt Concerns Mount

In a move that was more or less anticipated after the recent plague of problems, Saab today announced that it will not be present at the most prestigious automotive event of the year, the 2011 Frankfurt Motor Show.

"Presence at the show requires resources that Saab are currently allocating towards the restart of production in Trollhattan," said a posting on the Swedish firm's official blog. "Whilst it would be desireable to be at the show to help further Saab’s global presence, it is not considered an appropriate use of resources at this time."

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New Saab 9-3 to Debut in Early 2013 with a Different Name, 9-2 Successor Still on the Table

Refreshingly enough, this isn’t a story about Saab’s troubles. Instead, it is a ray of hope as the Swedish carmaker lays out its plans for the future. These include a replacement for the aging 9-3 sedan, which according to Saab’s North American president, Tim Colbeck, will debut in the first quarter of 2013. Read more »

Saab Sells 5 Million Shares to Find Short-Term Funds

Exactly a month ago to this day, Saab announced a deal with China's Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co while also revealing a grand plan for expanding its range with three new models, the 9-1, 9-6X and 9-7. It also delivered its first 9-4X in the US. All’s well that ends well, right?

Well, in Saab’s case it looks like we haven’t seen the end just yet. The Swedish firm continues to face a cash-flow problem. Thus, it issued a press release concerning the subscription notice for 5 million shares under a €150 million agreement between Swan and GEM Global Yield Fund Limited.

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Saab Delays Payments to White-Collar Employees

When it comes to Saab, it seems that for every dollop of good news that trickles out from Sweden there are multiple bad news.

On Tuesday, the cash-strapped Swedish automaker said that its white-collar workers will not receive their next payment (at least not on time) because the company has not yet been paid by its investors.

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Update: Saab Subsidiary Resolves Bankruptcy Threat

This just in; only a few hours after it was made known that one of Saab’s suppliers submitted a bankruptcy petition against the automaker’s affiliate company Saab Automobile Tools, the Swedish firm issued a short statement saying that it has resolved the issue with Swepart verktyg AB.

Follow the jump to read the official statement from Saab's parent company Swedish Automobile N.V., formerly known as Spyker Cars N.V.

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More Troubles: Supplier Files for Bankruptcy of Saab’s Tool Division

New troubles are brewing for the never-ending roller-coaster that is Saab. On Friday, one of Saab’s many unpaid suppliers, SwePart Verktyg AB, lost its patience and applied for the Swedish automaker’s Saab Tools subsidiary to be declared bankrupt.

This is the first time that one of Saab’s suppliers has made such a move. The Swedish automaker’s parent company, Netherlands-based Swedish Automobile (SWAN), issued a short statement saying that it will try to resolve the problem as soon as possible:

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Saab Further Delays Production Restart Due to Lack of Parts

Saab announced today that it is still in discussions with its suppliers over supply and delivery terms in order to restart production at its Trollhattan factory.

Yet, as the Swedish automaker tries to secure short-term funds, it isn't able to guarantee that production will commence on August 9 as Saab's new plan had initially called for, postponing the date to the end of August.

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Saab 9-6: Subaru-Based Crossover Prototype Comes out of the Closet

Back in the corporate heydays of GM, before the Detroit automaker went bust, the General would re-badge just about anything it could get its hands on if it were to make a fast buck without breaking a sweat.

This lazy corporate mentality was not only limited to GM’s American products but it spread throughout the entire company. Saab and even Subaru were subjected to this crude process, which was mostly limited to swapping badges and grilles.

When GM controlled the fate of Saab and held a 20 percent share of Subaru, the Detroit company's executive gurus came up with the bright idea of re-badging Subaru models as higher-end Saabs and selling them for a premium.

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New Saab 9-4X SUV Arrives in the US, First Model Delivered in Ohio

Saab is still trying to work through its problems, but the Swedish carmaker has some good news from the States. The first examples of the firm’s new crossover, the Cadillac SRX-based 9-4X, have just arrived at US showrooms.

“Our first vehicles are just hitting retailers and our first customer sale took place last weekend at Saab North Olmstead in Cleveland, Ohio” said President and COO of Saab Cars North America, Tim Colbeck.

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EIB Approves Lease of Saab’s Real Estate

The European Investment Bank has finally approved the lease of 50.1% of Saab Automobile’s property to a Swedish Consortium led by Hemfrosa Fastigheter AB for a period of 15 years. The deal is expected to net Saab Automobile 25 million Euros ($41 million). Read more »

Saab Finalizes Deal with Panga Da and Youngman, Announces New 9-1, 9-6X and 9-7

Saab’s parent company Swedish Automobile NV said on Monday it converted the non-binding memorandum of understanding with Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co into a final agreement. However, the deal is still subject to regulatory approval from Chinese and Swedish authorities as well as the European Investment Bank.

In addition to the above agreement, Saab announced the formation of a Sweden-based joint venture company between itself and Youngman called NPJV, which will focus on the development of three new product models.

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More Good News for Saab as Swedes Receive €25 Million Loan

Another day, another new story for Svenska Aeroplan Aktiebolaget –or, as you might know it, Saab. The Swedish company announced on Wednesday that it has entered a €25 million convertible bridge loan from Gemini Investment Fund Limited.

The loan’s annual interest is 10% and the conversion price is €1.38 per share, while Saab can at any time repay the loan, presumably when the expected Pang Da and Youngman Lotus funding is received, without a penalty.

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Saab Secures Further Funding by Leasing its Property

Another day, another chapter in the ongoing saga that is the survival of Saab. After yesterday’s order from a (yet unnamed) Chinese company, which temporarily solved its cash-flow problem, today the automaker announced that it has reached an agreement with a consortium of Swedish real investors led by Hemfosa Fastigheter AB, for the sale of 50.1% of Saab Property for a period of 15 years.

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New Chinese Order Provides Saab with a Temporary Lifeline

Maybe the future of Saab isn’t as dark as it looks, and the voluntary bankruptcy proposed by suppliers isn’t the only solution. Well, at least for now. That’s because the Swedish automaker announced today that an unnamed Chinese company place an order to buy 582 cars, with a total value of € 13 million.

The pre-payment is to be received this week, giving Saab a much needed funding to pay its workers and suppliers. This, however, is only a short-term lifeline for the ailing company and the efforts to secure funds that will guarantee the brand’s future and restart production, which has been halted again since June 8, are ongoing.

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Saab Says it Can’t Pay Workers, Company’s Survival in Doubt

New clouds are forming over Saab as the automaker’s parent company, Swedish Automobile N.V., formerly known as Spyker Cars N.V., said on Thursday it will be unable to pay its 3,800 employees their wages because it has not yet obtained the necessary short-term funding.

Swedish Automobile said it and Saab “are in discussions with various parties” to secure short-term funding, including through a sale and lease-back of Saab’s real estate assets.

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